Symbol | Price | Change | %Change |
---|---|---|---|
I:DJI | $31,500.68 | +823.32 | +2.68% |
SP500 | $3,911.74 | +116.01 | +3.06% |
I:COMP | $11,607.62 | +375.43 | +3.34% |
U.S. stocks
were whipsawing overnight after a rally Friday as fresh economic data tempered investors’ expectations of steep Federal Reserve interest-rate hikes.
Stocks climbed last week as pressure from rising Treasury yields let up somewhat and investors speculated the Federal Reserve may not have to be as aggressive about raising interest rates as earlier thought as it fights to control inflation. That gave Wall Street a reprieve from its recent tumbles.
Markets seemed unfazed by the possibility that Russia may have defaulted on its foreign debt for the first time since the 1917 Bolshevik Revolution, further alienating the country from the global financial system amid its war in Ukraine.
Russia faced a Sunday night deadline to meet a 30-day grace period on interest payments originally due May 27. But it could take time to confirm a default.
Positive news about inflation helped push stocks in New York higher on Friday, but the boost to sentiment may prove ephemeral, “largely because the downward trend for equity indices remains intact and we have seen previous instances of a single event pertaining to inflation, economic outlook and central banks’ policies bringing back market jitters and reversing dip-buying sentiments,” Jun Rong Yeap of IG said in a commentary.
The S&P 500 notched a 6.4% gain for the week, erasing the brutal loss it took a week earlier, though it’s still close to 20% below its record set early this year.
On Friday, it gained 116.01 points to 3,911.74 The Dow Jones Industrial Average rose 2.7% to 31,500.68, while the tech-heavy Nasdaq ended 3.3% higher, at 11,607.62.
Smaller company stocks also rallied. The Russell 2000 rose 3.2% to 1,765.74.
To beat down punishingly high inflation, central banks are raising interest rates and taking other measures that hurt prices for investments and could slow the economy enough to cause a recession.
But pressure from rising Treasury yields has abated somewhat as investors speculate the Federal Reserve might be able to take a lighter touch in raising interest rates than earlier thought.
Meanwhile, Asian shares advanced Monday.
Hong Kong’s Hang Seng index led regional gains, surging 2.5% to 22,249.47, while the Nikkei 225 in Tokyo gained 1.5% to 26,886.36. In South Korea, the Kospi climbed 1.8% to 2,408.17. Australia’s S&P/ASX 200 added 1.9% to 6,704.30 while the Shanghai Composite index rose 0.8% to 3,377.90.
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